Lloyds Banking Group in bad property bet |
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| Economy | |
| Written by Gary Howes | |
| Friday, 13 November 2009 | |
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However funding will still be made to administrators of Kenmore Property Group. Lloyds Banking Group (LON:LLOY) is said to be chasing debts and investments of more than £700m last night after the collapse of a property developer that it has been bankrolling. Administrators at Grant Thornton were appointed to salvage what they could of Kenmore Property Group, a £1.8bn collection of funds and companies in which John Kennedy, once said to be one of Scotland’s wealthiest men, is the main shareholder, the Times reports.The group, which borrowed heavily from HBOS during the property boom and in a sector that is still struggling some would say the collapse is not a surprise. HBOS is now incorporated in the Lloyds Banking Group, formed after the merger of Lloyds TSB and HBOS in 2008. Kenmore Property Group comprises 21 separate companies, with assets thought to be worth about £1.8bn, in towns and cities including Manchester, Leeds, Middlesbrough and Plymouth. Kenmore owned the 196 Deansgate building in Manchester city centre and Jackson House in Sale. However, in an apparent contradiction, The Times also says that in addition to 'chasing' their investments, Lloyds Banking will continue its emergency funding for the business as it is administered by Grant Thornton.
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